Information Technology (IT) or Information Communication Technology (ICT) sector is one of the fastest growing industries in the world. The Australian ICT Sector includes computer services, telecommunication services, and some selected manufacturing and wholesale trade industries. It helps to create jobs, products/services and exports. The industry also has an impact on the productivity of virtually all other industries.
The ICT industry has undergone significant change since the Australian Beaureu of Statistics last conducted a survey in 1996. The total income for the sector in June 1999 was almost $63billion that’s and increase of 28% when compared to June 1996.
Video and computer games are a big factor in the rise. Australian companies like UbiSoft are beginning to break into American and Japanese controlled market. UbiSoft’s hit game Dark Reign sold worldwide and was voted as the strategic game for ’97/’98. Codemasters is another example; they have been able to break into the English market with their hit games Shane Warne Cricket and Colin McRae Rally. This is also quite helpful for other Australian companies because it boosts credibility of Australian developers and makes other Australian games more readily accepted on the market.
Although software development is up hardware development has taken a dive, with earnings slipping from nearly $2 billion down to just over $1.1 billion. This drop in earnings has caused severe job cuts in this sector, from 5,700 jobs down to 2, 400 that is nearly a 57.2% in job losses from 1996.
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Australian Law A very noticeable feature of the Trade Practices Act is the inclusion of some provisions dealing not only with anti-competition generally, but specifically those covering anti-competitive practices in the telecommunications industry. This represents a major advancement in the protection of yet another potentially abusive area of consumer services, which can come up with the ...
The industry is now benefiting from services, such as Computer Consultancy. Revenue from 1996 has jumped up almost 46% in 1999. Another service that is benefiting the industry is Data Processing. With jobs increasing in number. In 1996 employment was 5,291 jobs to an increase in 1999 of 7,174 jobs. That is an increase of 35.6% over 3 years.
There are many positive impacts of the ICT industry on the economy. For example it boosts Australia’s exports around the world. In 2000 New Zealand increased its purchasing of Australian ICT products and services by a staggering 13.8%. It is creating many jobs for Australia’s unemployed. In the computer services sector alone there has been massive 35.2% increase in the amount of people employed.
One negative impact of the ICT industry on the economy is job losses. Even though it creates jobs ICT also causes some job losses, such as Electric Cable and Wiring sector. In 1996 there were 3, 369 jobs in the sector. At the end of 1999 there was only 997 people employed in this industry. Over 3 years 70.4% of jobs in this industry were lost. This reduction of the workforce is due to excess importation of foreign ICT products.
Another negative impact on the economy is the issue of software piracy. Software piracy is largely due to the high sums of money software companies charge for their product. One example is Microsoft and Windows which retails for around $A100. So therefore more and more people are not buying from the marketplace and are choosing to buy CD Burners and copy these software products. Piracy in Australia is not particularly bad when compared to countries such as Papua New Geuni and Thailand.
The most significant negative impact on the economy is foreign ownership. Companies such as Erricson have large Australian production plants as well as research facilities. But due to losses over the first quarter of 2001 Erricson will be downsizing their workforce. This sudden loss of jobs may have an effect both on the share market and on the Australian Dollar.
Foreign ownership is one reason the government must get involved and create plans to help Australian companies to get up and running. One of the government’s plans is to create an ICT Centre of Excellence. The government will provide $129.5 million over 5 years as well as funding from Technology and Arts Portfolio and the Australian Research Council. Industry contributions are expected to increase the funding to $160 million over 5 years.
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Understanding the impact of information technology will greatly affect one’s choice of career path. In this world of computers, electronic data and the internet, it is more practical to consider jobs and careers that go hand in hand with IT. There are solid evidences that the ICT industry will soon be the biggest player in any world economies. In the healthcare industry, every patient data is ...
The centre will be involved in multi- – disciplinary ICT research aimed both at producing fundamental advances in ICT as well as ICT projects of commercial relevance to the industry. The Centre will also provide a facility for post – graduate research training.
The overall impact of the ICT industry on the Australian economy is more beneficial rather than harmful. The ICT industry has seen an increase in revenue over a three-year period between 1996 and 1999. Revenue has gone from $31.16 billion to $39.86 billion that is an increase of 27.9%. Even though there were large job cuts in the electric wire and cable sector, the ICT industry managed to add another 3, 500 jobs between the 3 year period between 1996 and 1999.
If Australia can get more ICT industries running, through the various government programs, Australia can boost both its economy and its dollar. In the future Australia needs to put more ICT industries on the market. If it can do this and combat the American and European industries it will be able increase exports and therefore will be able to increase trade all around the world.
Bibliography
WWW sites (author and date not available)
Australian Beureau of Statistics (online), available: http://abs.gov.au
Australian Job guide (online), available: http://detya.gov.au
